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2� 17�271 �
<br /> DEED �F TRUST
<br /> Loan Na: 7�7 3�4�94 �C�nti�1 ued� Page 4
<br /> hazard, business in�terruption, and bviler insurance, as Lender may reasanab�y requir�. Pfll�cies shall be wri�ten in
<br /> form, amoun�sf �o�erages and basis reasanably a���p�ahle �o Lender and issued by a cvmpany or companies
<br /> �easonab�y acceptabie �o Lender. Trus�or, upon reques� v� Lender, will deli�er ro Lender trom time to t�me �he
<br /> policies or cer�iticate� ❑f insurance in form sa#isfiac��ry ta Lender, Encluding stipu�ativns that ca�erages wifl no� l�e
<br /> cancell�d or diminished wi�hout at leas't t�n {1 D� days priar w�ittan nn�ice �v Lender. Each insurance polEcy alsv
<br /> shaE! inciude an endarsement prv�iding tha�covefag� in�a�or of Ler�der wiii na�he impaired in any way by any act.
<br /> omission or detault of Trust�r ar any ather persan. 5�vul� the Real Property be laca�ed in an area designated by
<br /> the Administrator vf the Federa[ Emergency N[anagement Aget�cy as a spe�ial fload hazard area, Trustor agrees ta
<br /> ob�ain and main�ain Federal Flv�d [nsuranc�, i� a�ailab�e, �or�he fufE unpaid principal balanGe n� the loan and any
<br /> priar liens �n the propefty securing the [aan, up t� th� maximum policy limits se� under the National Flvod
<br /> Insurance Program, �r as other�vise required by Lender, and to main�ain such insurance fvr�he term ❑fi�he loan.
<br /> Applicativn af Praceeds. Trustor shai� pr�mp�ly n�tify �ender vf any lo�s �r damage �a �he Praperty. Lender may
<br /> make prvo� ❑f lass if Trus�or �ai�s ta do so within fifteen {15� days af the casualty. Whether or not Lender's
<br /> securi�y is �mpair�d, Lender may, a� Lender's �lec�ivn, rece��e and re�ain the proceeds ❑f any insurance and apply
<br /> �he proceeds to #he redu�tion of '�he Indebtedness, paymen� o� any �ien af�ec�ing the Praperty, or �he res�oration
<br /> and repair v�the Pr�perty. 1� Lender elec�s fi� apply the prviceeds to restara�ian and repair, Trus�or shail repair ar
<br /> replace the damaged ar destrvyed �mpra�ements in a manner sa�is�actory �v Lender. Lender shail, up�n
<br /> satis�ac-�ory pro�f ❑f such expenditure, pay vr reimburse Trustar #rom the praceeds for the reasvnable cast o�
<br /> repair or restara�ion i� Trust�r is not in default under this Deed v� Trus�. Any pr��eeds which haWe not been
<br /> dssbursed wi�hin '�8� days a�ter �heir re�eipt ar�d which tender has na� commi��ed tv the repair or res�orat��n of
<br /> �he Property shall �e used �Erst t❑ pay any amvunt awing to Lender under this ❑eed af Trus�, then t� pay accrued
<br /> inter�st. and �he remainder, i� any, shall �e applied tv the principal ba[an�e �f the lnd��tedness. If Lender h�lds
<br /> any praceeds after payment in ful[ v� the [ndeb�edness, such pr�ceeds sha�� b� paid to Tr�sto� as Trust�r's
<br /> interests may appear.
<br /> Compliance wi#h Existing Indebtedness. Quring the period in which any Existing Indebtedness described below is
<br /> �n e#tec�, campliance wi�h �he insurance prv�isivns contained �n �he instrument e�id�ncing su�h �xEsting
<br /> lndebtedness shaf! consti�ute cvmpEiance with �he insurance pra�isivns under this ❑e�d v-F Trus�, to the ex�en�
<br /> complianc� with the t�rms af this Deed of Trust wauld constitute a dup��cation �� insurance requirement. if a�y
<br /> proceeds #rom the insuran�e becom� payable on �ass, th� pro�isions in�his Deed ���fust�vr divis�vn o�praceeds
<br /> sha[[app�y only ta tha�por�ian❑f�he proceeds no�payable to the holder af the Exis�ing lndebtedness.
<br /> Trus�or's Report on �nsurance. Llpon request v�Lend�r. howe�er no�more than ❑nce a year, Yrustor shall furnish
<br /> �o Lende� a repvrt on each existing policy o� insurance showing: �'I y the name ❑� �he �nsurer; {2y the risks
<br /> insured; {3� the amaun�t of the policy; {4y �he prvperty insured, the then current replacem�n� �alue ot such
<br /> prvper�y, and the manner of de�ermining that�alue; and {5} the expiratian da#e ��the p�licy. Trustot shalE. upan
<br /> re�ues�t v#L�nder. ha�e an in�iependent appraiser satts�actory ta Lender de��rmine the �ash�a�ue replacement cost
<br /> o�the Proper�y.
<br /> LENDER'S EXPEN�ITURES. [f any a�tivn ❑r proceeding is c�mmenced �hat would materEally a��ec� L�nder's in�erest in
<br /> the Praperty ar i��'�usto� �ails �o c�mply with any prvv�sivn o�this De�� ❑f Trus� or a�y Related Documents, in�luding
<br /> but no� ��mited fia Trus�nr's failure �v comp�y with any obligativn to maintain Existing Indeb�edness in g�od standing as
<br /> required below, or�v discharge ar pay wh�n due any amaunts Trustor is required-�o discha�ge�r pay under this Deed af
<br /> Trus� fl� any Re�a�ed ❑ocumen�s, Lender on Trustvr's behal€ may �bu� shal� not be obliga�ed �v} take any ac�ion that
<br /> Lender d�ems appropriate� inciuding but no'� limi�ed to discharging or paying ail taxes� liens, secur��y in�erests,
<br /> en�umhrances and vther claims, a� any fime �eWied or pla�ed on the Proper�y and paying alf costs f�r ir�suring,
<br /> main'taining and preserWing the Proper'ty. All su�h expenditures incurred vr paid by L�nder�a�such purposes wiSf then
<br /> bear in�eres� at the rate charged und�r�he Nvte �ram �he date incurred ar paid by Lender�❑ the da�e af repayment by
<br /> Trustor. Afl such expenses will became a part Q� �he Endebtedness and, at Lender's option, will �Af be payable on
<br /> demand; �By be added to �he �alance at �he Na�e and be apportioned among and be payab�e wE�h any ins�allm�n�
<br /> payments to become due durin� ei�her {�� the term o�any app��cable insurance policy; or ��y the remaining �erm ❑f
<br /> the No�e; ar �G} be treated as a �aIloan paymen�which wil� be du� and payable at the Nvte's ma�urity. Yhe �eed o�
<br /> Trus� a�so will s�cure payment �� these amounts. SuGh right shall be in add��ion ta ai� vther rights and remedies to
<br /> which Lender may be en�it[ed upon Default.
<br /> WARRANTY; aEFENSE�F TITLE. The following pro�is�ans relatir�g t�ownership�f the Prap�rty are a part a��his deed
<br /> v�Trust:
<br /> Ti�le. Trus�or warrar��s that: �a� Trustor halds g�vd and marketable ti'�le v� record �o the Prop�r�y in �ee simpie,
<br /> �ree and ciear a# all liens and encumbranGes other than thase s�f �or�h in the Real Property descrip�ian ar in the
<br /> Exist�ng 4ndeb�ed�ess section�e1�v� a�-in any�i�se insurance pfllicy, ti�4e re�or�, or�inaf title apinion issued in #a�dr
<br /> ofir and accep�ed by� Lender in cvr�nec�ivn w�th �his Deed a�F Trust, and �h} Trust�r has the full right. power, and
<br /> authority to execute and deEi�er this Deed❑�Trust�o Lender.
<br /> ❑efense o�Ti��e. Subje�t �o the e�€cep�ivn in �he paragraph abaWe. T�ustor warran�s and w�ll foreWe� de�end �he
<br /> �i��e��the Property against the �arrv�ul claims ❑f a�! persons. In the e�er�t any ac�ion ❑r proceeding is �v�nmenced
<br /> �hat ques�ions T�us�or's title vr the interest v�T�ustee ar Lender under thEs �eed af Trus�, Trust�r shai� defend the
<br /> actian at Trustor's ex��nse. �'rus�tor may be th� nornina� par�y in such pro�eeding, but Lender sha�� be entitied to
<br /> parti�ipat� in �he proceeding and t� �e represen�e�i in the proceeding by counsel vf Lender's �wn cho�ce, and
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